Delhi, 13 February (H.S.): Union Finance Minister Nirmala Sitharaman will introduce the new Income Tax Bill 2025 in the Lok Sabha today on February 13.
“Smt. Nirmala Sitharaman to move for leave to introduce a bill to consolidate and amend the law relating to income-tax,” official list of business for the parliament session scheduled for Thursday reads.Key Highlights of Income Tax Bill 2025- The bill introduces simpler language, replacing ‘Assessment Year’ with ‘Tax Year’ and ‘Previous Year’ with ‘Financial Year’.
– There is no new tax in the bill. It only puts together the tax-liability provisions provided in the Income Tax Act, 1961.
– It has 536 sections, 23 chapters and 16 schedules in just 622 pages. Whereas the 1961 Act had 298 sections, 23 chapters and 14 schedules.
– The new law will come into force from April 1, 2026; rules will be implemented after the Act is notified.
– It includes both the old tax regime and the new tax regime for individuals, Hindu Undivided Families (HUFs) and others.
– Explanations or conditions are not mentioned, instead tables and formulas are used.
– The bill includes a taxpayers charter, which will explain the rights and obligations of the taxpayer.
– The bill makes a special provision for calculating capital gains in case of market-linked debentures.
– To simplify the rules, income not forming part of total income has been moved to schedules.
– Deductions from salary like standard deduction, gratuity, cash payment on leave not availed etc. have been tabulated at one place instead of being kept in separate sections/rules.
-For salaried individuals who opt for the new tax regime, there’s a standard deduction of ₹75,000. Additionally, the employer’s contribution to the National Pension Scheme (up to 14% of salary) is eligible for deduction.
Hindusthan Samachar
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